photo by: Bremen Keasey

The historic Reuter building, 612 New Hampshire St., in downtown Lawrence. City Commissioners will consider Tuesday night approving a financial incentive package that would allow the redevelopment of the four-story building to house a mix of residential and commercial units.

Lawrence city commissioners will consider approving an incentive package next week that would allow for the redevelopment of the historic Reuter building in downtown Lawrence.

Commissioners will hold a public hearing on Tuesday for a package that could provide a variety of incentives to redevelop the former Reuter Organ building and its adjacent property at 612 New Hampshire St. and 614-616 New Hampshire St. in downtown Lawrence. The historic limestone building first erected in 1882 nearly collapsed two years ago, and developers now hope to renovate the main building and a smaller building on the southern portion of the lot into residential and commercial buildings.

As the Journal-World reported, a private developer in Lawrence applied in December 2024 for an incentives package that would include a 95% tax rebate on the project’s new construction for the next 22 years and the creation of a new sales tax district that would add a special 2% sales tax to any purchases made within the building for the next 22 years.

The developer plans, according to a city memo, to create 10 new residential units in the larger Reuter building, with seven two-bedroom units, two studio/one-bedroom units and one three-bedroom unit. Four commercial units would be developed as well, distributed among the first floor, second floor, rooftop and basement. The smaller building on the south side would be redeveloped to house three commercial units. The total project budget calls for a $17 million capital investment.

The developer proposes “complete rehabilitation” of the two buildings in a way that would adhere to standards to maintain the building’s status on the National Register of Historic Places, according to the city memo.

A letter based on an analysis by consultants with Baker Tilly notes the project has already received approval for federal and state historic tax credits worth around $6.3 million. Additionally, it found the project would likely not proceed without the city providing incentives, and the financial package would provide a maximum of $2.95 million. The letter also found the project meets the city’s economic development policy, in part, by promoting redevelopment that would “enhance downtown Lawrence.”

In other business, commissioners will consider awarding a contract to a consulting firm to conduct a corridor study that would focus on North Lawrence.

The commissioners will consider entering an engineering services agreement of just under $400,000 with the Kansas City-based engineering company HNTB Corporation for the North Lawrence Comprehensive Corridor Study.

The city requested proposals for firms to conduct a corridor study earlier in the year. As the Journal-World reported, the corridor study would explore not just potential economic development plans, but also improvements at the Union Pacific underpass and at-grade railroad crossings in North Lawrence, options to add more multimodal transportation and make North Second Street safer, and even future bridge alignments over the Kansas River.

As part of the proposed agreement, the city would also work to establish a nine-person task force to work with the firm on the study that would focus on areas of placemaking, infrastructure and transportation and economic revitalization, according to a city memo. The task force would include specific appointees from various stakeholders — including members of the Aviation Advisory Board, the North Lawrence Improvement Association, Lawrence Chamber of Commerce and residents of North Lawrence — outlined by the agreement.

If the agreement is approved, city staff say the task force should be appointed by Oct. 15, with the first meeting set for later that month.